Sunday, March 2, 2008

Report: UK energy Firms told to Surrender Profits

Maybe it could be solution in the U.S. also:

British gas and electricity companies are being ordered by the government to hand over part of their bumper profits or face a new windfall tax, according to a newspaper report on Sunday.

Chief executives of utility firms have been told that, unless they agree to subsidise a new nationwide "fuel poverty" scheme aimed at the 4.5 million poorest households, a levy will be put on their profits, the Sunday Telegraph said.

Finance minister Alistair Darling plans to unveil the fuel poverty programme in his budget on March 12, it added.

The move follows widespread protests at ballooning gas and electricity bills. Five of the six big suppliers to British homes and small businesses have announced big price increases this year, blaming soaring wholesale energy costs.

The Britain's energy watchdog Ofgem launched an investigation into power and gas supply markets because of growing public concern on Feb. 21.

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